How are WTMF collar max profit and max loss calculated?

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the WTMF collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.50%), the computed maximum profit is $218.00 per contract and the computed maximum loss is -$182.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WTMF collar?

The breakeven for the WTMF collar priced on this page is roughly $41.82 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The WTMF market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WTMF implied volatility affect this collar?

WTMF ATM IV is at 32.50% with IV rank near 5.50%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

WTMF Collar Strategy

WTMF (WisdomTree Managed Futures Strategy Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.

This actively managed exchange-traded fund (ETF) primarily directs at least 80% of its net assets, including any funds borrowed for investment purposes, into "managed futures." Its objective is to generate favorable absolute returns in various market conditions, including periods of growth or decline, with performance largely independent of conventional equity or fixed-income market fluctuations. The fund utilizes a non-diversified investment strategy.

WTMF (WisdomTree Managed Futures Strategy Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $237.4M, a beta of 0.29 versus the broader market, a 52-week range of 36.17-42.37, average daily share volume of 27K, a public-listing history dating back to 2011. These structural characteristics shape how WTMF etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.29 indicates WTMF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. WTMF pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on WTMF?

A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.

WTMF snapshot

As of August 14, 2026, spot at $41.81, ATM IV 32.50%, IV rank 5.50%, expected move 9.32%. The collar on WTMF below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this collar structure on WTMF specifically: IV regime affects collar pricing on both sides; compressed WTMF IV at 32.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.32% (roughly $3.90 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WTMF expiries trade a higher absolute premium for lower per-day decay. Position sizing on WTMF should anchor to the underlying notional of $41.81 per share and to the trader's directional view on WTMF etf.

WTMF collar setup

The WTMF collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With WTMF at $41.81 on that close, the first option leg uses a $44.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WTMF chain at a 35-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 WTMF shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$41.81	long
Sell 1	Call	$44.00	$0.90
Buy 1	Put	$40.00	$0.91

WTMF collar risk and reward

Net Premium / Debit: -$4,182.00
Max Profit (per contract): $218.00
Max Loss (per contract): -$182.00
Breakeven(s): $41.82
Risk / Reward Ratio: 1.198

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.

WTMF collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on WTMF. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$182.00
$9.25	-77.9%	-$182.00
$18.50	-55.8%	-$182.00
$27.74	-33.7%	-$182.00
$36.98	-11.5%	-$182.00
$46.23	+10.6%	+$218.00
$55.47	+32.7%	+$218.00
$64.71	+54.8%	+$218.00
$73.96	+76.9%	+$218.00
$83.20	+99.0%	+$218.00

When traders use collar on WTMF

Collars on WTMF hedge an existing long WTMF etf position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.

WTMF thesis for this collar

The market-implied 1-standard-deviation range for WTMF extends from approximately $37.91 on the downside to $45.71 on the upside. A WTMF collar hedges an existing long WTMF position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current WTMF IV rank near 5.50% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on WTMF at 32.50%. As a Financial Services name, WTMF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WTMF-specific events.

WTMF collar positions are structurally neutral (protective); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. WTMF positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WTMF alongside the broader basket even when WTMF-specific fundamentals are unchanged. Always rebuild the position from current WTMF chain quotes before placing a trade.

Frequently asked questions

What is a collar on WTMF?: A collar on WTMF is the collar strategy applied to WTMF (etf). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With WTMF etf at $41.81 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed WTMF chain strike and the premiums come straight from that session's bid/ask midpoint.
How are WTMF collar max profit and max loss calculated?: Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the WTMF collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.50%), the computed maximum profit is $218.00 per contract and the computed maximum loss is -$182.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WTMF collar?: The breakeven for the WTMF collar priced on this page is roughly $41.82 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The WTMF market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on WTMF?: Collars on WTMF hedge an existing long WTMF etf position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
How does current WTMF implied volatility affect this collar?: WTMF ATM IV is at 32.50% with IV rank near 5.50%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.